Driving the Future Trend towards autonomous vehicles (AV); decisive and irreversible? Why or why not?

Driving the Future

  • Trend towards autonomous vehicles (AV); decisive and irreversible? Why or why not?

Autonomous Vehicles (AV) is an innovation that has had a positive implication both to improving the human being ease of doing business and sustainable operations. In a more different publication from the case study, Allied Market Research (2022) research work had noted that as of 2020, the global autonomous vehicle market total value was $76.13 billion in year 2020. This is with an expectation of increased growth to reach $2,161.71 billion by year 2030. Therefore, it is clear from this report and in the case study that AV trends is both decisive and irreversible. Despite of its irreversible nature, this investment is complex, capital intensive and call for immense funds to be invested with consistent R&D investment. This is however necessary according to my views since from the COVID-19 pandemic emerged, the demand for AV has significantly increased. This is starting with the robotics for delivery of foods and also ensuring there is social distance as people travel of interact.

  • Autonomous vehicles impact on an industry

From my experience with hotel industry, the AV has a significant implication on this sector. For instance, in Saudi Arabia Statista (2022) noted that the prevalence of COVID-19 pandemic has contributed to an increase in demand for online food delivery. As a future best practice, this will continue to increase where the existing gap could be mitigated by investing on AV. Further, in Saudi Arabia, the AV would directly impact on the hotel industry as this impact on the commuters as their daily commuting becomes productivity time. Since individuals would be more potentially to transition further away from the city centers to the remote residential locations. Further, as time progress, rather than reliance on roadside motels, the AV would offer means for commuters to progress with their journey in the entire night as autonomous car driving is safe and also efficient. By guaranteeing efficiency in the food and services provision, a successful services provision and food products would be significantly increased.

Hence, to the hotel industry, through an investment in AV, the ease of movement would be improved in terms of on-time delivery of the ordered food products and other services categories. In order to further explain this, the Kim & Mauborgne’s Eliminate-Reduce-Raise-Create Grid is applicable (Shyam, 2019). The applicability of this model is that it prioritises on guiding them towards simultaneous elimination or reduction, raising and creating while unlocking a new blue ocean (see table 1);

Eliminate The food industry in KSA need to reconsider the engagement of traditional deliveries such as cyclists and embrace robotics and drones as a path towards fully leverage on AV in their operationsRaise They need to improve on their customers relations and how they deliver their products and services. By introducing the new relations with their customers, they would understand the changes that are in the pipeline such as AV
Reduce Currently, the food industry has been working through a drive-in purchasing. This can be reduced to using the AV technology which offers theCreate Since AV technology is capital intensive and involving engagement of technical teams, this call for an increased investment in the process implementation.

Table 1: Kim & Mauborgne’s Eliminate-Reduce-Raise-Create Grid

  • AV use in discussing industry evolution, roles of different players and shift of the profit pool

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